A loan officer compares the interest rates for 48 month fixed rate auto loans and

48 month variable rate auto loan rates. Two, independent random samples for fixed

and variable rates provided the following rates. Five 48 month fixed rate auto loans

had the following rates:

3.75%, 4,50%, 3.99%, 4.25%, 3.99%

Five 48 month variable rate loans led to the following rates:

3.59%, 3.75%, 3.69%, 3.50%, 3.80%

1. 10 pts

a) Is there enough evidence to indicate a difference in the variances of the interest rates

for these fixed and variable rate loans? Assume alpha = .05.

2.5 pts

b) What is the p value for this problem?

2. 10 pts

a) Is there enough evidence to indicate that the mean interest rate for fixed-rate

loans is greater than the interest rate for variable rate loans? Assume alpha =.05

b) What is the p-value for this problem?

Answer rating: 100% (QA)

a To determine if there is enough evidence to indicate a difference in the variances of the interest ... View the full answer